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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

484882

Report Date :

11.01.2018

 

IDENTIFICATION DETAILS

 

Name :

DIYOU FIBRE (M) SDN. BHD.

 

 

Registered Office :

Level 11, 1 Sentral, Jalan Rakyat, Kuala Lumpur Sentral, 50470 Kuala Lumpur, Wilayah Persekutuan, Malaysia.

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2016

 

 

Date of Incorporation :

10.07.1998

 

 

Com. Reg. No.:

465406-D

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

The Subject is engaged in the production of recycled polyester, polyester staple fibre,thread & related products.

 

 

No. of Employees :

250 [2018]

 

 

 

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but Correct

 

 

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List

 

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, an upper middle-income country, has transformed itself since the 1970s from a producer of raw materials into a multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move further up the value-added production chain by attracting investments in high technology, knowledge-based industries and services. NAJIB's Economic Transformation Program is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. Malaysia is vulnerable to a fall in world commodity prices or a general slowdown in global economic activity.

The NAJIB administration is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Domestic demand continues to anchor economic growth, supported mainly by private consumption, which accounts for 53% of GDP. Nevertheless, exports - particularly of electronics, oil and gas, and palm oil - remain a significant driver of the economy. In 2015, gross exports of goods and services were equivalent to 73% of GDP. The oil and gas sector supplied about 22% of government revenue in 2015, down significantly from prior years amid a decline in commodity prices and diversification of government revenues. Malaysia has embarked on a fiscal reform program aimed at achieving a balanced budget by 2020, including rationalization of subsidies and the 2015 introduction of a 6% value added tax. Sustained low commodity prices throughout the period not only strained government finances, but also shrunk Malaysia’s current account surplus and weighed heavily on the Malaysian ringgit, which was among the region’s worst performing currencies during 2015. The ringgit rebounded in early 2016, but hit new lows following the US presidential election amid a broader selloff of emerging market assets.

Bank Negara Malaysia (the central bank) maintains adequate foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments, although it remains vulnerable to volatile global capital flows. In order to increase Malaysia’s competitiveness, Prime Minister NAJIB raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program, policies that favor and advance the economic condition of ethnic Malays.

Malaysia signed the 12-nation Trans-Pacific Partnership (TPP) free trade agreement in February 2016, although the future of the TPP remains unclear following the US withdrawal from the agreement. Along with nine other ASEAN members, Malaysia established the ASEAN Economic Community in 2015, which aims to advance regional economic integration.

 

Source : CIA

 

 

 

EXECUTIVE SUMMARY

 

REGISTRATION NO.

:

465406-D

COMPANY NAME

:

DIYOU FIBRE (M) SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

10/07/1998

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

LEVEL 11, 1 SENTRAL, JALAN RAKYAT, KUALA LUMPUR SENTRAL, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

LOT 89, JALAN PERMATA 2/3, ARAB-MALAYSIAN INDUSTRIAL PARK,, 71800 NILAI, NEGERI SEMBILAN, MALAYSIA.

TEL.NO.

:

06-7993121

FAX.NO.

:

06-7998833

EMAIL

:

INFO@DIYOUFIBRE.COM

WEB SITE

:

WWW.DIYOUFIBRE.COM

CONTACT PERSON

:

LIM KA SING ( DIRECTOR )

INDUSTRY CODE

:

22209

PRINCIPAL ACTIVITY

:

PRODUCTION OF RECYCLED POLYESTER, POLYESTER STAPLE FIBRE,THREAD & RELATED PRODUCTS

AUTHORISED CAPITAL

:

MYR 10,000,000.00 DIVIDED INTO
ORDINARY SHARE 10,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 10,000,000.00 DIVIDED INTO
ORDINARY SHARES 10,000,000 CASH OF MYR 1.00 EACH.

SALES

:

MYR 81,269,191 [2016]

NET WORTH

:

MYR 20,211,425 [2016]

STAFF STRENGTH

:

250 [2018]

BANKER (S)

:

PUBLIC BANK BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

LIMITED

PAYMENT

:

SLOW BUT CORRECT

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

 

 

HISTORY / BACKGROUND

 

The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject shall have a minimum one director. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

 

The Subject is principally engaged in the (as a / as an) production of recycled polyester, polyester staple fibre,thread & related products.

 

The Subject is not listed on Bursa Malaysia (Malaysia Stock Exchange).

 

Former Address(es)

Address

As At Date

20-M, LORONG GOPENG, 41400, SELANGOR, MALAYSIA

27/03/2011

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

18/06/2008

MYR 10,000,000.00

MYR 10,000,000.00

29/12/2000

MYR 5,000,000.00

MYR 1,200,000.00

10/07/1998

MYR 100,000.00

MYR 2.00

 

The major shareholder(s) of the Subject are shown as follows :

 

Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

MS. CHENG LEE WAH +

LOT 85, JALAN PERMATA 2/3, ARAB-MALAYSIAN INDUSTRIAL PARK, 71800 NILAI, NEGERI SEMBILAN, MALAYSIA.

591111-01-6468 5873898

5,640,000.00

56.40

MR. LIM ANN YE

145, PERSIARAN CINTA ALAM, COUNTRY HEIGHTS, 43000 KAJANG, SELANGOR, MALAYSIA.

880818-56-5365

2,000,000.00

20.00

MR. LIM KA SING +

LOT 85, JALAN PERMATA 2/3, ARAB-MALAYSIAN INDUSTRIAL PARK, 71800 NILAI, NEGERI SEMBILAN, MALAYSIA.

590131-01-5847 5664779

1,360,000.00

13.60

MS. LIM XIU BIN

5, JALAN 10, TAMAN PUTRA, MUKIM AMPANG, 68000 AMPANG, SELANGOR, MALAYSIA.

850515-14-5278

1,000,000.00

10.00

---------------

------

10,000,000.00

100.00

============

=====

+ Also Director

Former Shareholder(s) :

Name

Country

IC/PP/Loc No

Shareholding

Last Updated

HANAPI BIN SULIMAN

MALAYSIA

560405-10-5077

360,000.00

N/A

YU, G-HAN

MALAYSIA

308003447

8,639,999.00

N/A

YU,G-HAN

MALAYSIA

M14676286

8,639,999.00

N/A

 

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. LIM KA SING

Address

:

LOT 85, JALAN PERMATA 2/3, ARAB-MALAYSIAN INDUSTRIAL PARK, 71800 NILAI, NEGERI SEMBILAN, MALAYSIA.

Other Address(es)

:

5,JALAN 10, TAMAN PUTRA, MUKIM AMPANG;68000 SELANGOR, MALAYSIA.

IC / PP No

:

5664779

New IC No

:

590131-01-5847

Date of Birth

:

31/01/1959

Nationality

:

MALAYSIAN

Date of Appointment

:

10/07/1998



INTEREST CHECK

Interest in companies

:

see below

Interest in business

:

see below

Former interest

:

see below

INTEREST IN COMPANY

No

Local No

Company

Designation

App Date

Shareholding

Profit/(loss) After Tax

Financial Year

Status

As At

No.

%

1

465406D

DIYOU FIBRE (M) SDN. BHD.

Director

10/07/1998

1,360,000.00

13.60

MYR984,781.00

2016

-

26/12/2017

2

463524U

FORTUNE SPINNER SDN. BHD.

Director

02/05/2006

25.00

0.0006

MYR84,700.00

2016

-

26/12/2017

3

236151T

FUTURE PLASTIC INDUSTRIES SDN. BHD.

Director

20/05/1992

1,500,000.00

50.00

MYR1,391,088.00

2016

-

26/12/2017

4

455820P

SETINDAN SDN. BHD.

Director

14/03/2012

164,000.00

8.20

MYR(221,373.00)

2016

-

26/12/2017

5

439774V

SYANAS DEVELOPMENT SDN. BHD.

Shareholder

-

250,000.00

25.00

MYR(12,949.00)

2016

-

26/12/2017

6

785005P

XIN HANG FIBER (M) SDN. BHD.

Director

16/08/2007

25,000.00

25.00

MYR(7,337.00)

2016

-

26/12/2017


INTEREST IN BUSINESS

No

Local No

Business

Designation

App Date

Shareholding (%)

Status

As At

1

000506574H

SIN SOON HONG ENTERPRISE CO.

SOLE PROPRIETORSHIP

18/06/2004

100.00

-

27/11/2017


FORMER INTEREST

No

Local No

Company

Designation

App Date

Withdrawn Date

Shareholding

Status

1

215188K

AMWIC FURNITURE SDN. BHD.

Director

18/11/2004

25/02/2016

-

-

2

215188K

AMWIC FURNITURE SDN. BHD.

Shareholder

-

-

250000.00

-

3

79082V

ATTA GLOBAL GROUP BERHAD

Shareholder

-

-

165000.00

-

4

945949M

DIYOU FUTURE BIOMASS SDN. BHD.

Director

24/05/2011

29/09/2012

-

-

5

945949M

DIYOU FUTURE BIOMASS SDN. BHD.

Shareholder

-

-

1.00

-

6

630878X

DPS RESOURCES BERHAD

Shareholder

-

-

-

-

7

453392T

IFCA MSC BERHAD

Shareholder

-

-

-

-

8

45462W

LEN CHEONG FURNITURE SENDIRIAN BERHAD

Director

16/01/2004

09/05/2007

-

-

9

194474V

LEN CHEONG INDUSTRIES SDN. BHD.

Director

13/04/2004

19/05/2007

-

-

10

10089H

LEN CHEONG MANUFACTURING SDN. BHD.

Director

16/01/2004

19/05/2007

-

-

11

264846V

LEN CHEONG RESOURCES SDN. BHD.

Director

13/04/2004

19/05/2007

-

-

12

1087765H

METRO ANDAMAN SDN. BHD.

Director

16/04/2014

03/06/2015

-

-

13

339810A

SAND NISKO CAPITAL BERHAD

Director

16/01/2004

17/05/2007

-

-

14

339810A

SAND NISKO CAPITAL BERHAD

Shareholder

-

-

999650.00

-

15

4690V

SIN HENG CHAN (MALAYA) BHD.

Shareholder

-

-

-

-

16

439774V

SYANAS DEVELOPMENT SDN. BHD.

Director

23/08/2002

29/06/2016

-

-

 

DIRECTOR 2

 

Name Of Subject

:

MS. CHENG LEE WAH

Address

:

LOT 85, JALAN PERMATA 2/3, ARAB-MALAYSIAN INDUSTRIAL PARK, 71800 NILAI, NEGERI SEMBILAN, MALAYSIA.

IC / PP No

:

5873898

New IC No

:

591111-01-6468

Date of Birth

:

11/11/1959

Nationality

:

MALAYSIAN

Date of Appointment

:

10/07/1998



INTEREST CHECK

Interest in companies

:

see below

Interest in business

:

none in our databank

Former interest

:

see below

INTEREST IN COMPANY

No

Local No

Company

Designation

App Date

Shareholding

Profit/(loss) After Tax

Financial Year

Status

As At

No.

%

1

465406D

DIYOU FIBRE (M) SDN. BHD.

Director

10/07/1998

5,640,000.00

56.40

MYR984,781.00

2016

-

26/12/2017

2

631017V

FABULOUS GALAXY SDN. BHD.

Director

18/02/2013

485,000.00

12.78

MYR9,987.00

2016

-

26/12/2017

3

463524U

FORTUNE SPINNER SDN. BHD.

Director

05/11/2012

75.00

0.002

MYR84,700.00

2016

-

26/12/2017

4

236151T

FUTURE PLASTIC INDUSTRIES SDN. BHD.

Director

30/05/1994

600,000.00

20.00

MYR1,391,088.00

2016

-

26/12/2017

5

297020W

MASTER-PACK GROUP BERHAD

Shareholder

-

435,200.00

0.79

MYR2,556.00

2016

-

26/12/2017

6

455820P

SETINDAN SDN. BHD.

Director

14/03/2012

380,000.00

19.00

MYR(221,373.00)

2016

-

26/12/2017


FORMER INTEREST

No

Local No

Company

Designation

App Date

Withdrawn Date

Shareholding

Status

1

630878X

DPS RESOURCES BERHAD

Shareholder

-

-

-

-

2

15379V

ECOFIRST CONSOLIDATED BHD.

Shareholder

-

-

-

-

3

453392T

IFCA MSC BERHAD

Shareholder

-

-

1694000.00

-

4

122592U

KERJAYA PROSPEK GROUP BERHAD

Shareholder

-

-

-

-

5

516165H

QUALITY ACHIEVERS SDN. BHD.

Director

18/06/2000

22/03/2003

-

-

6

235905H

SCAN-MOTIF ENTERPRISE SDN. BHD.

Director

02/12/1994

21/01/1997

-

-

7

4690V

SIN HENG CHAN (MALAYA) BHD.

Shareholder

-

-

-

-

8

348122P

SPIND MALAYSIA SDN. BHD.

Director

24/06/1995

25/11/1995

-

-

9

1070197D

TECHNOLOGY PP INDUSTRIES SDN. BHD.

Director

14/11/2013

22/12/2014

-

-



FORMER DIRECTOR(S)

 

Name

Address

IC/PP No

Appointed Date

Withdrawn Date

HANAPI BIN SULIMAN

49, JALAN 8/27D, BANDART WANGSA MAJU, SEKSYEN 6, KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA

560405-10-5077

19/08/2007

02/04/2012

YU G-HAN

LOT 85, LORONG AM 9, ARAB-MALAYSIAN INDUSTRIAL PARK, NILAI, NEGERI SEMBILAN, MALAYSIA

308003447

22/08/1998

17/09/2013

 

Note : The above information was generated from our database.



MANAGEMENT

 

 

 

1)

Name of Subject

:

LIM KA SING

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

ROGER YUE, TAN & ASSOCIATES

Auditor' Address

:

WISMA GOSHEN (GROUND & 1ST FLOOR), 60. & 62, JALAN SS 22/21, DAMANSARA JAYA, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. KHOO GUAT EEAN

IC / PP No

:

A0564082

New IC No

:

661127-07-5412

Address

:

10, JALAN COKMAR 2F, MUTIARA BUKIT RAJA, DI JALAN MERU, 41050 KLANG, SELANGOR, MALAYSIA.

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

PUBLIC BANK BHD

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

15/04/2002

1ST PARTY 1ST CHARGE

PUBLIC BANK BERHAD

MYR 350,000.00

Unsatisfied

2

27/08/2003

FACILITIES AGREEMENT & 1ST PARTY 1ST CHARGE

PUBLIC BANK BERHAD

MYR 2,000,000.00

Unsatisfied

3

06/06/2007

FACILITIES AGREEMENT & OTHERS

PUBLIC BANK BERHAD

MYR 2,000,000.00

Unsatisfied

4

28/02/2011

FACILITY AGREEMENT

PUBLIC BANK BERHAD

MYR 1,200,000.00

Satisfied

5

21/11/2011

FACILITY AGREEMENT, DEBENTURE

PUBLIC BANK BERHAD

MYR 2,500,000.00

Unsatisfied

6

20/12/2012

MEMORANDUM OF DEPOSIT & LETTER OF AUTHORISATION

CIMB BANK BERHAD

MYR 6,500,000.00

Unsatisfied

7

23/11/2015

1ST PARTY CHARGE & DEBENTURE

PUBLIC ISLAMIC BANK BERHAD

-

Unsatisfied

8

02/03/2017

FIRST LEGAL CHARGE

CIMB BANK BERHAD

-

Unsatisfied

9

11/05/2017

FIRST LEGAL CHARGE

CIMB BANK BERHAD

-

Unsatisfied

10

16/06/2017

FIRST LEGAL CHARGE

CIMB BANK BERHAD

-

Unsatisfied

 

 

LITIGATION CHECK - SUBJECT COMPANY AS A DEFENDANT


* A check has been conducted in our databank againt the Subject whether the Subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

 

DEFAULTER CHECK AGAINST SUBJECT


* We have checked through the Subject in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection.

No blacklisted record & debt collection case was found in our defaulters' databank.

 

 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES


The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

]

Good 31-60 Days

[

]

Average 61-90 Days

[

X

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

WORLDWIDE

Credit Term

:

30 - 60 DAYS

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

OPERATIONS

 

Products manufactured

:

RECYCLED POLYESTER, POLYESTER STAPLE FIBRE,THREAD & RELATED PRODUCTS

Competitor(s)

:

ATA INDUSTRIAL (M) SDN. BHD.

ENTEGRIS (MALAYSIA) SDN. BHD.

V.S. PLUS SDN. BHD.

YONG KAM FOOK PLASTIC INDUSTRIES SDN. BERHAD

 

Total Number of Employees:

 

YEAR

2018

2017

2016

2014

2013

GROUP

N/A

N/A

N/A

N/A

N/A

COMPANY

250

200

200

200

200

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) production of recycled polyester, polyester staple fibre,thread & related products.

The Subject is engaged in the production of Polyester Staple Fibre (Solid & Hollow) by using PET bottle chips.

The major usage of Polyester Staple Fibre: Automotive Industry (Carpet), Furniture Industry (Sofa), Non woven (Filter), Padding (Clothes), Plastic Product.

The Subject's mission is to manufacture a consistent quality of Polyester Staple Fibre through process adoption & recycling activities ( environment protection ) of used PET drinking bottle.

The Subject is one of the leading manuafacturer of regenerate, recycle polyester staple fibre (PSF) products.


 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

06-7993121

Match

:

N/A

Address Provided by Client

:

LOT 89, JALAN PERMATA 2/3 , ARAB-MALAYSIAN INDUSTRIAL PARK, 71800 NILAI, NEGERI SEMBILAN,

Current Address

:

LOT 89, JALAN PERMATA 2/3, ARAB-MALAYSIAN INDUSTRIAL PARK,, 71800 NILAI, NEGERI SEMBILAN, MALAYSIA.

Match

:

YES

Latest Financial Accounts

:

YES

 

Other Investigations


We have contacted the staff from the Subject and he provide some information.


FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Decreased

[

2012 - 2016

]

Profit/(Loss) Before Tax

:

Decreased

[

2012 - 2016

]

Return on Shareholder Funds

:

Unfavourable

[

4.87%

]

Return on Net Assets

:

Unfavourable

[

5.91%

]

The continuous fall in turnover could be due to the lower demand for the Subject's products / services.The Subject's profit fell sharply because of the high operating costs incurred. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

Working Capital Control

Stock Ratio

:

Unfavourable

[

74 Days

]

Debtor Ratio

:

Acceptable

[

58 Days

]

Creditors Ratio

:

Favourable

[

52 Days

]

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The Subject's management was quite efficient in handling its debtors. The Subject's debtors days were at an acceptable range, thus the risk of its debts turning bad was minimised. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

Liquidity

Liquid Ratio

:

Unfavourable

[

0.76 Times

]

Current Ratio

:

Unfavourable

[

1.39 Times

]

A low liquid ratio means that the Subject may be facing working capital deficiency. If the Subject cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

Solvency

Interest Cover

:

Unfavourable

[

2.99 Times

]

Gearing Ratio

:

Favourable

[

0.33 Times

]

The Subject incurred losses in the year. It did not generate sufficient income to service its interest.  If the situation does not improve, the Subject may be vulnerable to default in servicing the interest. The Subject was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

Overall Assessment :

The Subject's performance deteriorated over the years with lower turnover and profit. Due to its weak liquidity position, the Subject will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the Subject. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. The Subject as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

Overall financial condition of the Subject : LIMITED

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2014

2015

2016

2017*

2018**

Population ( Million)

30.0

31.0

31.6

32.1

32.9

Gross Domestic Products ( % )

6.0

4.6

4.2

5.5

5.3

Domestic Demand ( % )

6.4

6.2

6.3

-

-

Private Expenditure ( % )

7.9

6.9

7.8

10.6

10.0

Consumption ( % )

6.5

6.1

5.1

-

-

Investment ( % )

12.0

8.1

10.0

12.0

-

Public Expenditure ( % )

2.3

4.2

3.3

-

-

Consumption ( % )

2.1

4.3

2.0

-

-

Investment ( % )

2.6

(1.0)

1.1

-

-

Balance of Trade ( MYR Million )

82,480

91,577

88,145

94,593

96,993

Government Finance ( MYR Million )

(37,414)

(37,194)

(38,401)

(39,887)

(39,790)

Government Finance to GDP / Fiscal Deficit ( % )

(3.4)

(3.2)

(3.1)

(3.0)

(2.8)

Inflation ( % Change in Composite CPI)

3.2

4.0

2.1

3.5

3.0

Unemployment Rate

2.9

3.1

3.4

3.4

3.3

Net International Reserves ( MYR Billion )

417

390

391

-

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

4.00

3.50

-

-

-

Average 3 Months of Non-performing Loans ( % )

2.10

2.00

1.90

-

-

Average Base Lending Rate ( % )

6.85

6.79

6.81

-

-

Business Loans Disbursed( % )

18.6

2.2

-

-

-

Foreign Investment ( MYR Million )

43,486.6

43,435.0

-

-

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

49,203

45,658

43,255

-

-

Registration of New Companies ( % )

6.1

(7.2)

(5.3)

-

-

Liquidation of Companies ( No. )

11,099

7,066

-

-

-

Liquidation of Companies ( % )

(19.5)

(36.3)

-

-

-

Registration of New Business ( No. )

332,723

364,230

376,720

-

-

Registration of New Business ( % )

1.0

9.0

3.0

-

-

Business Dissolved ( No. )

21,436

-

-

-

-

Business Dissolved ( % )

18.0

-

-

-

-

Sales of New Passenger Cars (' 000 Unit )

588.3

591.3

514.6

527.8

-

Cellular Phone Subscribers ( Million )

44.0

44.2

44.0

-

-

Tourist Arrival ( Million Persons )

27.4

25.7

30.2

30.1

-

Hotel Occupancy Rate ( % )

63.6

58.8

61.2

-

-

Credit Cards Spending ( % )

5.8

6.8

6.3

-

-

Bad Cheque Offenders (No.)

-

-

-

-

-

Individual Bankruptcy ( No.)

22,351

18,457

-

-

-

Individual Bankruptcy ( % )

1.7

(17.4)

-

-

-

 

INDUSTRIES ( % of Growth ):

2014

2015

2016

2017*

2018**

Agriculture

2.0

1.3

(5.1)

5.6

2.4

Palm Oil

6.7

7.0

8.2

-

-

Rubber

(10.4)

(11.0)

(12.3)

-

-

Forestry & Logging

(4.2)

(7.2)

(4.8)

-

-

Fishing

2.7

2.1

2.9

-

-

Other Agriculture

6.2

6.0

6.8

-

-

Industry Non-Performing Loans ( MYR Million )

303.8

343.7

420.3

-

-

% of Industry Non-Performing Loans

1.4

1.5

1.8

-

-

Mining

3.3

5.3

2.2

0.5

0.9

Oil & Gas

3.0

3.5

4.5

-

-

Other Mining

46.6

47.1

42.6

-

-

Industry Non-performing Loans ( MYR Million )

63.5

180.1

190.0

-

-

% of Industry Non-performing Loans

0.3

0.8

0.8

-

-

Manufacturing #

6.1

4.9

4.4

5.5

5.3

Exported-oriented Industries

7.1

6.5

3.3

21.1

-

Electrical & Electronics

11.8

9.2

7.0

-

-

Rubber Products

(1.3)

5.1

3.9

-

-

Wood Products

7.8

7.0

7.0

-

-

Textiles & Apparel

10.8

7.5

6.7

-

-

Domestic-oriented Industries

7.7

4.7

3.0

-

-

Food, Beverages & Tobacco

6.1

8.9

7.5

-

-

Chemical & Chemical Products

1.4

3.5

5.1

-

-

Plastic Products

2.7

3.9

5.1

-

-

Iron & Steel

2.8

1.6

2.2

-

-

Fabricated Metal Products

2.8

4.6

5.1

-

-

Non-metallic Mineral

6.9

6.8

5.5

-

-

Transport Equipment

14.4

5.2

(3.1)

-

-

Paper & Paper Products

4.7

3.2

3.9

-

-

Crude Oil Refineries

13.0

14.3

13.7

-

-

Industry Non-Performing Loans ( MYR Million )

5,730.8

4,243.7

4,214.1

-

-

% of Industry Non-Performing Loans

25.6

19.0

18.5

-

-

Construction

11.7

8.2

7.4

7.6

7.5

Industry Non-Performing Loans ( MYR Million )

1,666.4

1,638.0

1,793.9

-

-

% of Industry Non-Performing Loans

7.5

7.3

7.9

-

-

Services

6.6

5.1

5.6

5.9

5.8

Electric, Gas & Water

3.8

3.6

5.4

2.5

2.6

Transport, Storage & Communication

7.70

7.55

6.85

7.35

7.30

Wholesale, Retail, Hotel & Restaurant

7.70

6.65

6.65

7.05

6.65

Finance, Insurance & Real Estate

5.15

2.90

4.70

5.70

5.90

Government Services

6.3

4.0

4.9

4.4

4.5

Other Services

4.8

4.7

4.8

5.3

5.3

Industry Non-Performing Loans ( MYR Million )

5,373.5

6,806.6

7,190.6

-

-

% of Industry Non-Performing Loans

24.1

30.5

31.5

-

-

* Estimate / Preliminary

** Forecast

# Based On Manufacturing Production Index 



INDUSTRY ANALYSIS

 

MSIC CODE

22209 : Manufacture of diverse plastic products n.e.c.

INDUSTRY :

MANUFACTURING

The manufacturing sector is forecast to increase 5.3% in year 2018 (2017: 5.5%). Output of export-oriented industries is projected to expand on account of sustained demand for E&E, refined petroleum and woods products. Growth in the domestic-oriented industries is anticipated to remain resilient supported by ongoing construction of infrastructure projects as well as strong demand for consumer products, especially food and transport equipment.

Value added of the manufacturing sector expanded further by 5.8% during the first half of 2017 (January – June 2016: 4.4%) with expansion across a wide range of outputs in both the export- and domestic-oriented industries. During the first eight months, production increased 6.4%, while sales rebounded significantly by 15.6% to RM500.2 billion (January – August 2016: 4%; -0.7%; RM432.8 billion). Output of export-oriented industries rose 6.5% (January – August 2016: 4.3%) led by an upturn in global electronics cycle and further enhanced by strong demand for resource-based products. Meanwhile, domestic-oriented industries expanded 6.2% (January – August 2016: 3.4%) benefiting from vibrant consumption and construction activities.

Within the export-oriented industries, E&E output expanded 9.3% while sales surged 16.3% to RM169.5 billion (January – August 2016: 6.8%; 9%; RM145.8 billion). Growth emanated mainly from the expansion in output of printed circuit boards, semiconductor devices and electronic integrated circuits which strengthened further by 24.4%, 11.9% and 16.9% (January – August 2016: 11.9%; 5.9%; 15%), respectively. This is in line with the trend in global semiconductor sales which is expected to expand 11.5% in 2017, the highest level since 2010. On the contrary, the output of computers and peripheral equipment contracted 7.7% (January – August 2016: 3.1%) as a result of lower demand for notebooks and personal computers following rising preferences for smartphones and tablets. Meanwhile, consumer electronics grew at a moderate pace of 2.6% (January – August 2016: 5.3%) partly due to lower demand for in-car entertainment, portable media players and digital cameras.

Output of wood and wood products grew 7.3% (January – August 2016: 7.8%). The growth was primarily supported by output of sawmilling and planning of wood which expanded 14.7% (January – August 2016: 16.8%) in response to strong demand from Australia, Japan and the US. Meanwhile, production of wooden and cane furniture remained steady at 10.9% (January – August 2016: 10.9%), benefiting from greater adoption of technology and diversification of export markets.

Manufacture of food products rose 11.2%, largely attributed to a significant increase in refined palm oil at 26.1% (January – August 2016: 6.3%; -3.3%), following higher production of CPO. Meanwhile, output of other food products grew 7% supported by production of bread, cakes and other bakery (15.6%) as well as biscuits and cookies (12%) to meet the rising demand from households (January – August 2016: 11.1%; 19.2%; 19.1%).

For the year, the manufacturing sector is projected to expand further by 5.5% (2016: 4.4%) mainly attributed to an upturn in global semiconductor sales as well as higher demand for consumer products and construction materials.

OVERALL INDUSTRY OUTLOOK : Marginal Growth



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1998, the Subject is a Private Limited company, focusing on production of recycled polyester, polyester staple fibre,thread & related products. With its long establishment in the market, the Subject has received strong support from its stable customers base. Its business position in the market is quite stable and it is expected to enjoy better market shares over its rivals. Presently, the issued and paid up capital of the Subject stands at MYR 10,000,000.

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject is a fairly large and rapidly growing company with over 250 staff in its operations Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

The Subject's business performance showed a reverse trend as both its turnover and pre-tax profit have decreased compared to the previous year. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. Being a lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 20,211,425, the Subject should be able to maintain its business in the near terms.

The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources.

The Subject's payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts.

The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the Subject's future performance is very much depend on its marketing strategies in order to retain its position in the market.

Based on the above condition, we recommend credit be granted to the Subject normally.

 

 

FINANCIAL

 

PROFIT AND LOSS ACCOUNT

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS)

DIYOU FIBRE (M) SDN. BHD.

 

Financial Year End

2016-12-31

2015-12-31

2014-12-31

2013-12-31

2012-12-31

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

81,269,191

88,622,169

92,286,476

70,459,293

75,893,124

----------------

----------------

----------------

----------------

----------------

Total Turnover

81,269,191

88,622,169

92,286,476

70,459,293

75,893,124

Costs of Goods Sold

(75,641,721)

(81,829,138)

(85,854,011)

(67,567,999)

(70,185,455)

----------------

----------------

----------------

----------------

----------------

Gross Profit

5,627,470

6,793,031

6,432,465

2,891,294

5,707,669

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) FROM OPERATIONS

1,000,633

2,410,032

1,728,092

(919,234)

1,509,338

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) BEFORE TAXATION

1,000,633

2,410,032

1,728,092

(919,234)

1,509,338

Taxation

(15,852)

1,317,785

(494,463)

244,795

(429,925)

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) AFTER TAXATION

984,781

3,727,817

1,233,629

(674,439)

1,079,413

----------------

----------------

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

10,318,310

6,590,493

5,356,864

6,031,303

4,951,890

Prior year adjustment

(1,091,666)

-

-

-

-

----------------

----------------

----------------

----------------

----------------

As restated

9,226,644

6,590,493

5,356,864

6,031,303

4,951,890

----------------

----------------

----------------

----------------

----------------

PROFIT AVAILABLE FOR APPROPRIATIONS

10,211,425

10,318,310

6,590,493

5,356,864

6,031,303

----------------

----------------

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) CARRIED FORWARD

10,211,425

10,318,310

6,590,493

5,356,864

6,031,303

=============

=============

=============

=============

=============

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

113,344

92,670

136,338

155,464

152,034

Bankers' acceptance

97,750

103,375

106,219

142,085

61,072

Hire purchase

29,484

45,905

14,303

2,823

1,568

Letter of credit

-

2,820

11,340

8,675

-

Term loan / Borrowing

246,620

98,822

105,731

26,792

1,183

Others

14,513

75,096

53,365

58,598

-

----------------

----------------

----------------

----------------

----------------

501,711

418,688

427,296

394,437

215,857

=============

=============

=============

=============

=============

DEPRECIATION (as per notes to P&L)

1,915,867

1,870,026

1,620,312

1,485,043

1,487,626

----------------

----------------

----------------

----------------

----------------

Total Amortization And Depreciation

1,915,867

1,870,026

1,620,312

1,485,043

1,487,626

=============

=============

=============

=============

=============

 

BALANCE SHEET

 

DIYOU FIBRE (M) SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

15,304,548

16,509,769

15,031,739

13,790,621

14,281,895

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM ASSETS

15,304,548

16,509,769

15,031,739

13,790,621

14,281,895

Stocks

16,376,707

22,723,131

18,692,252

26,657,020

16,258,720

Contract work-in-progress

29,910

22,050

28,426

13,877

-

Trade debtors

12,912,096

11,723,825

18,587,478

6,364,750

2,939,577

Other debtors, deposits & prepayments

2,149,630

1,755,604

2,259,633

1,059,167

1,252,323

Short term deposits

1,143,428

1,107,062

1,073,697

1,039,987

1,007,762

Cash & bank balances

3,173,579

1,613,454

3,045,670

410,607

1,205,203

Others

9,500

-

-

7,500

-

----------------

----------------

----------------

----------------

----------------

TOTAL CURRENT ASSETS

35,794,850

38,945,126

43,687,156

35,552,908

22,663,585

----------------

----------------

----------------

----------------

----------------

TOTAL ASSET

51,099,398

55,454,895

58,718,895

49,343,529

36,945,480

=============

=============

=============

=============

=============

CURRENT LIABILITIES

Trade creditors

10,748,683

13,700,585

18,749,746

9,034,601

5,387,627

Other creditors & accruals

11,642,054

11,555,658

11,968,510

11,952,594

1,986,513

Hire purchase & lease creditors

273,852

386,050

285,329

65,330

25,893

Bank overdraft

1,285,174

1,290,749

2,784,112

2,369,661

2,136,575

Short term borrowings/Term loans

640,169

559,196

385,440

372,873

-

Other borrowings

318,783

1,481,378

3,120,774

1,278,807

-

Bill & acceptances payable

-

2,352,000

574,000

4,506,000

1,643,000

Amounts owing to director

782,609

1,027,650

314,795

1,067,600

8,279,559

Provision for taxation

-

185,600

112,625

-

-

----------------

----------------

----------------

----------------

----------------

TOTAL CURRENT LIABILITIES

25,691,324

32,538,866

38,295,331

30,647,466

19,459,167

----------------

----------------

----------------

----------------

----------------

NET CURRENT ASSETS/(LIABILITIES)

10,103,526

6,406,260

5,391,825

4,905,442

3,204,418

----------------

----------------

----------------

----------------

----------------

TOTAL NET ASSETS

25,408,074

22,916,029

20,423,564

18,696,063

17,486,313

=============

=============

=============

=============

=============

SHARE CAPITAL

Ordinary share capital

10,000,000

10,000,000

10,000,000

10,000,000

10,000,000

----------------

----------------

----------------

----------------

----------------

TOTAL SHARE CAPITAL

10,000,000

10,000,000

10,000,000

10,000,000

10,000,000

Retained profit/(loss) carried forward

10,211,425

10,318,310

6,590,493

5,356,864

6,031,303

----------------

----------------

----------------

----------------

----------------

TOTAL RESERVES

10,211,425

10,318,310

6,590,493

5,356,864

6,031,303

----------------

----------------

----------------

----------------

----------------

SHAREHOLDERS' FUNDS/EQUITY

20,211,425

20,318,310

16,590,493

15,356,864

16,031,303

Long term loans

4,114,060

2,239,680

1,689,883

2,074,319

-

Hire purchase creditors

84,186

358,039

604,230

98,380

43,710

Deferred taxation

998,403

-

1,538,958

1,166,500

1,411,300

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM LIABILITIES

5,196,649

2,597,719

3,833,071

3,339,199

1,455,010

----------------

----------------

----------------

----------------

----------------

25,408,074

22,916,029

20,423,564

18,696,063

17,486,313

=============

=============

=============

=============

=============

 

FINANCIAL RATIO

 

DIYOU FIBRE (M) SDN. BHD.

 

TYPES OF FUNDS

Cash

4,317,007

2,720,516

4,119,367

1,450,594

2,212,965

Net Liquid Funds

3,031,833

(922,233)

761,255

(5,425,067)

(1,566,610)

Net Liquid Assets

(6,273,181)

(16,316,871)

(13,300,427)

(21,751,578)

(13,054,302)

Net Current Assets/(Liabilities)

10,103,526

6,406,260

5,391,825

4,905,442

3,204,418

Net Tangible Assets

25,408,074

22,916,029

20,423,564

18,696,063

17,486,313

Net Monetary Assets

(11,469,830)

(18,914,590)

(17,133,498)

(25,090,777)

(14,509,312)

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

1,502,344

2,828,720

2,155,388

(524,797)

1,725,195

Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)

3,418,211

4,698,746

3,775,700

960,246

3,212,821

BALANCE SHEET ITEMS

Total Borrowings

6,716,224

8,667,092

9,443,768

10,765,370

3,849,178

Total Liabilities

30,887,973

35,136,585

42,128,402

33,986,665

20,914,177

Total Assets

51,099,398

55,454,895

58,718,895

49,343,529

36,945,480

Net Assets

25,408,074

22,916,029

20,423,564

18,696,063

17,486,313

Net Assets Backing

20,211,425

20,318,310

16,590,493

15,356,864

16,031,303

Shareholders' Funds

20,211,425

20,318,310

16,590,493

15,356,864

16,031,303

Total Share Capital

10,000,000

10,000,000

10,000,000

10,000,000

10,000,000

Total Reserves

10,211,425

10,318,310

6,590,493

5,356,864

6,031,303

GROWTH RATIOS (Year on Year)

Revenue

(8.30)

(3.97)

30.98

(7.16)

(5.07)

Proft/(Loss) Before Tax

(58.48)

39.46

287.99

(160.90)

(5.37)

Proft/(Loss) After Tax

(73.58)

202.18

282.91

(162.48)

(10.03)

Total Assets

(7.85)

(5.56)

19.00

33.56

9.47

Total Liabilities

(12.09)

(16.60)

23.96

62.51

11.26

LIQUIDITY (Times)

Cash Ratio

0.17

0.08

0.11

0.05

0.11

Liquid Ratio

0.76

0.50

0.65

0.29

0.33

Current Ratio

1.39

1.20

1.14

1.16

1.16

WORKING CAPITAL CONTROL (Days)

Stock Ratio

74

94

74

138

78

Debtors Ratio

58

48

74

33

14

Creditors Ratio

52

61

80

49

28

SOLVENCY RATIOS (Times)

Gearing Ratio

0.33

0.43

0.57

0.70

0.24

Liabilities Ratio

1.53

1.73

2.54

2.21

1.30

Times Interest Earned Ratio

2.99

6.76

5.04

(1.33)

7.99

Assets Backing Ratio

2.54

2.29

2.04

1.87

1.75

PERFORMANCE RATIO (%)

Operating Profit Margin

1.23

2.72

1.87

(1.30)

1.99

Net Profit Margin

1.21

4.21

1.34

(0.96)

1.42

Return On Net Assets

5.91

12.34

10.55

(2.81)

9.87

Return On Capital Employed

5.57

11.50

9.17

(2.48)

8.78

Return On Shareholders' Funds/Equity

4.87

18.35

7.44

(4.39)

6.73

Dividend Pay Out Ratio (Times)

0

0

0

0

0

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 63.83

UK Pound

1

INR 85.28

Euro

1

INR 76.14

MYR

1

INR 15.98

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

PRI

 

 

Report Prepared by :

KET

                                                


 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.